1amul dairy on advertising kaira district co-operative milk producers‘union limited anand
TRANSCRIPT
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A PROJECT REPORTON
WORKING OFAMUL DAIRY ON ADVERTISING
KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERSUNIONLIMITED
ANAND
Prepared by Guided byHARSH R DAVE Prof. VIJAYANTIM.B.A SEM-2 TIKYANI
SUBMITTED TO
Dr. J. K. Patel Institute Of Management(AFFILIATED TO GUJARAT TECHNOLOGICAL UNIVERSITY)
Waghodiya, baroda.IN THE YEAR 2011
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ANAND MILK UNION LIMITED
THE KAIRA DISTRICT CO-OPERATIVE MILK
PRODUCERS UNION LIMITED
ANAND
Dr. J. K. Patel Institute of Management
CERTIFICATE
This is to certify that Mr HARSH DAVE student of Master of Business
Administration (Batch 2010-2012) at Dr. J. K. Patel Institute of Management,
Vadodara have undertaken a Project Titled Marketing in partial fulfillment of 2
years full time MBA programme of Gujarat Technological University,Ahmedabad. The Summer Internship Project has been undertaken under the
guidance of Prof. VIJAYANTI TIKYANI, faculty of Dr. J. K. Patel Institute of
Management.
This is also to ascertain that this project has been prepared only for the award of
Master of Business Administration degree and has not been submitted for anyother purpose.
Prof. Dr.AbhijeetChatterjeeFaculty Guide DirectorVIJAYANTI TIKYANI
Date:15/7/2011Place:Baroda
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The MBA programmed is well structured and integrated course of business studies.
The main objective of practical training at MBA level is to develop skill in student by
supplement to the theoretical study of business management in general. Industrial training
helps to gain real life knowledge about the industrial environment and business practices. The
MBA programmed provides student with a fundamental knowledge of business and
organizational functions and activities, as well as an exposure to strategic thinking of
management.
In every professional course, training is an important factor. Professors give us theoretical
knowledge of various subjects in the college but we are practically exposed of such subjects
when we get the training in the organization. It is only the training through which I come to
know that what an industry is and how it works. I can learn about various departmental
operations being performed in the industry, which would, in return, help me in the future
when I will enter the practical field.
Training is an integral part of MBA and each and every student has to undergo the training
for 2 months in a company and then prepare a project report on the same after the completion
of training.
During this whole training I got a lot of experience and came to know about the
management practices in real that how it differs from those of theoretical knowledge and the
practically in the real life.
In todays globalize world, where cutthroat competition is prevailing in the market,
theoretical knowledge is not sufficient. Beside this one need to have practical knowledge,
which would help an individual in his/her carrier activities and it is true that Experience isbest teacher.
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With immense pleasure, I would like to present this project report for Kaira DistrictCo-operative Milk Producers Union Ltd., Anand. It has been an enriching experience forme to undergo my summer training at AMUL, which would not have possible without the
goodwill and support of the people around. As a student ofDR. J. K. PATEL INSTITUTEOF MANAGEMENT I would like to express my sincere thanks to
all those who helped me during my practical training programmed.
I would like to give my heartily thanks to Mr. J P BHOI, Manager of
Administration, who permitted me to get training at AMUL. I am very thankful to Mr.SIRFRAJ PATHAN who helped me at every step whenever needed and who arranged allpossible visits for me at AMUL.
As we know research work needs hard work, keen insight and long patience with
scholarly vision based on content operation hence it becomes a humble duty to express my
sincere gratitude to Mr. PRATIK SIR, marketing in charge.
However, I accept the sole responsibility for any possible error of omission and would
be extremely grateful to the readers of this project report if they bring such mistakes to mynotice.
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Declaration
I am HARSH DAVE here by declare that the report on summer internship program
and project work entitled marketing of advertising is prepared by myself, if in this report
any kind of mistake so I am responsible for that.
Date:15/7/2011 HARSH DAVEPlace:Baroda
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CONTENTS
SR.NO. PARTICULARS
1 EXECUTIVE SUMMERY
2 INTRODUCTION AND HISTORY
3 ORGANIZATION PROFILE
4 VISION AND LOGO5 THE BRAND NAME OF AMUL
6 PLANTS
7 ORGANIZATION STRUCTURE
8 BOARD OF DIRECTOR
9 AMUL PRODUCTS
10 MARKETING DEPARTMENT- INTRODUCTION
-ORGANIZATION STRUCTURE
- MARKETING MIX- DISTRIBUTION CHANNEL- MARKET SEGMENTATION- SALES
11 H.R. DEPARTMENT- INTRODUCTION
- SELECTION PROCESS
- PERFORMANCE APPRAISAL
- WAGE AND SALARY ADMIN.
- COMPENSATION
- TRADE UNION
12 FINANCE DEPARTMENT
- INTRODUCTION
- ORGANIZATION STRUCTURE
13 ADVERTISING
14 CONCLUSION
15 SWOT ANALYSIS
16 FINDING AND SUGGESTIONS
17 BIBLIOGRAPHY
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EXECUTIVE SUMMARY
AMUL is a co-operative sector. It is the institution of the farmers, for the farmers and
from the farmers. The AMUL gives pleasure to the farmer to charge the own price, which was
not possible in earlier years.
This union was born on 14th
December 1946. The union provides facilities to its
members like more return, satisfactory price, insemination, first aid, group Insurance, cattle
food at confessional price etc.
AMUL dairy has five main departments like finance, personnel, commercial, milk
procurement and production. The finance department does the clerical work and takes care
of inflow and outflows of the cash. The other work of finance Department is to audit of
annual work.
The personnel department handles the work regarding personnel like appointment,
recruitment, promotion, transfer, dismissal, demotion, performance appraisal etc,
The commercial department conducts all promotional activities of local area. The
pricing decision of milk and buttermilk is taken at commercial department. The marketing
work is handle by GCMMF.
The production department produces the product with the help of latest technologies.
The production is done according to ISO marks requirement.
The milk procurement department gets the milk every day two times from 92 routes
and 1073 societies. For the maintenance of quality of milk there are 150 chilling units
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INTRODUCTION AND HISTORY
In the year 1946 the first milk union was established. This union was started with 250
liters of milk per day. In the year 1955 AMUL was established. In the year 1946 the union
was known as KAIRA DISTRICT CO-OPERATIVE MILK PRODUCERS UNION.
This union selected the brand name AMUL in 1955.
The brand name Amul means AMULYA. This word derived form the Sanskrit
word AMULYA which means PRICELESS. A quality control expert in Anand had
suggested the brand name AMUL. Amul products have been in use in millions of homes
since 1946. Amul Butter, Amul Milk Powder, Amul Ghee, Amulspray, Amul Cheese, Amul
Chocolates, Amul Shrikhand, Amul Ice cream, Nutramul, Amul Milk and Amulya have made
Amul a leading food brand in India. (The total sale is Rs. 6 billion in 2005). Today Amul is a
symbol of many things like of the high-quality products sold at reasonable prices, of the
genesis of a vast co-operative network, of the triumph of indigenous technology, of the
marketing savvy of a farmers' organization. And have a proven model for dairy development
(Generally known as ANAND PATTERN).
In the early 40s, the main sources of earning for the farmers of Kaira district were
farming and selling of milk. That time there was high demand for milk in Bombay. The main
supplier of the milk was Polson dairy limited, which was a privately owned company and
held monopoly over the supply of milk at Bombay from the Kaira district. This system leads
to exploitation of poor and illiterates farmers by the private traders. The traders used to
beside the prices of milk and the farmers were forced to accept it without uttering a single
word.
However, when the exploitation became intolerable, the farmers were frustrated. They
collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the
freedom movement. Sardar Patel advised the farmers to sell the milk on their own by
establishing a co-operative union, Instead of supplying milk to private traders. Sardar Patel
sent the farmers to Shri Morarji Desai in order to gain his co-operation and help. Shri Desai
held a meeting at Samarkha village near Anand, on 4th January 1946. He advised the
farmers to form a society for collection of the milk.
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These village societies would collect the milk themselves and would decide the prices
at which they can sell the milk. The district union was also form to collect the milk from such
village co-operative societies and to sell them. It was also resolved that the Governmentshould be asked to buy milk from the union. \
However, the govt. did not seem to help farmers by any means. It gave the negative
response by turning down the demand for the milk. To respond to this action of govt., the
farmers ofKaira district went on a milk strike. For 15 whole days not a single drop of milk
was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk
commissioner of Bombay then visited Anand to assess the situation. Having seemed the
condition, he decided to fulfill the farmers demand.
Thus their cooperative unions were forced at the village and district level to collectand sell milk on a cooperative basis, without the intervention of Government. Mr. Verghese
Kurien showed main interest in establishing union who was supported by Shri
Tribhuvandas Patel who lead the farmers in forming the Co-operative unions at the village
level. The Kaira district milk producers union was thus established in ANAND and was
registered formally on 14th December 1946. Since farmers sold all the milk in Anand through
a co-operative union, it was commonly resolved to sell the milk under the brand name
AMUL.
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At the initial stage only 250 liters of milk was collected everyday. But with the
growing awareness of the benefits of the cooperativeness, the collection of milk increased.
Today Amul collect 11 lakhs liters of milk everyday. Since milk was a perishable
commodity it becomes difficult to preserve milk flora longer period. Besides when the milk
was to be collected from the far places, there was a fear of spoiling of milk. To overcome this
problem the union thought out to develop the chilling unit at various junctions, which would
collect the milk and could chill it, so as to preserve it for a longer period. Thus, today Amul
has more than 150 chilling centers in various villages. Milk is collected from almost 1073
societies.
With the financial help from UNICEF, assistance from the govt. of New Zealand
under the Colombo plan, of Rs. 50 millions for factory to manufacture milk powder and
butter was planned. Dr.Rajendra Prasad, the president of India laid the foundation on
November 15, 1954. Shri Pandit Jawaharlal Nehru, the prime minister of India declared itopen at Amul dairy on November 20, 1955.
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PEOPLE POWER: AMUL'S SECRET OF SUCCESS
The system succeeded mainly because it provides an assured market at remunerative prices
for producers' milk besides acting as a channel to market the production enhancement
package. What's more, it does not disturb the agro-system of the farmers. It also enables the
consumer an access to high quality milk and milk products. Contrary to the traditional
system, when the profit of the business was cornered by the middlemen, the system ensured
that the profit goes to the participants for their socio-economic upliftment and common good.
Looking back on the path traversed by Amul, the following features make it a pattern and
model for emulation elsewhere.
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Amul has been able to:
Produce an appropriate blend of the policy makers farmers board of management and the
professionals: each group appreciating its rotes and limitations,
Bring at the command of the rural milk producers the best of the technology and harness its
fruit for betterment.
Provide a support system to the milk producers without disturbing their agro-economic
systems,
Plough back the profits, by prudent use of men, material and machines, in the rural sector for
the common good and betterment of the member producers and
Even though, growing with time and on scale, it has remained with the smallest producer
members. In that sense. Amul is an example par excellence, of an intervention for rural
change.
The Union looks after policy formulation, processing and marketing of milk, provision of
technical inputs to enhance milk yield of animals, the artificial insemination service,
veterinary care, better feeds and the like - all through the village societies. Basically the unionand cooperation of people brought Amul into fame i.e. AMUL (ANAND MILK UNION
LIMITED), a name which suggest THE TASTE OF INDIA.
Plants
First plant is at ANAND,which engaged in the manufacturing of milk, butter, ghee, milk
powder, flavored milk and buttermilk.
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Second plant is at MOGAR, which engaged in manufacturing chocolate, nutramul, Amul
Ganthia and Amul lite.
Third plant is at Kanjari, which produces cattelfeed
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Fourth plant is at Khatraj, which engaged in producing cheese
name Amul. Today Today, twelve dairies a producing different products under the brandAmul dairy is no. 1 dairy in Asia and no. 2 in the world, which is matter of proud for Gujarat
and whole India.
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Organisation profile
NAME: Kaira district co-operative milk producers union limited, anand.
FORM: co-operative sector registered under the co-operative society act.
LOCATIN: kaira district co-operative milk producers Ltd,
Milk producers Ltd,
Amul dairy road,
Anand-388001
Gujrat.
PREMISES OF AMUL: 49.55 acres
REGISTRATION: 14th December 1946,
REGISTERED OFFICE: Kaira district co-operative milk producers union Ltd Anand388001,
INITIAL PROMOTERS:
(1) Shri tribhovan das patel
(2) Shri morarji desai
(3)Shri vallabh bahi patel
(4)Dr.varghese kurien
OFFICE TIME: 10:00A.M TO 6:00P.M
TOTAL NO OF SHIFT:
1st
shift time: 08:30 A.M TO 04:30 P.M
2nd
shift time: 10:00 A.M TO 10:00A.M TO 06:00 P.M
3rd shift time: 04:30 P.M TO 12:30 A.M
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VILLAGE CO-OPERATIVE SOCITY: 1137
TOTAL NO, OF SOCITY MEMBERS: 543278
BANKARS: kaira district co-operative bank.
Axis bank.
State bank of India
Bank of Baroda
Corporation bank
H.D.F.C bank
AUDITORS: Special auditor (milk) milk audit office anand.
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VISION & LOGO
Vision:
The main Motto of Amul is to help farmer. Amul system works under objective of
highest possible price to the milk producers and lowest possible price to consumer. Farmers
are paid money in cash payment for the milk. Milk gives them money for daily necessities.
Amul is the one who started using their profit for the milk producer common good.
Logo of the amul
Logo of AMUL is a ring of four hands, which are co-coordinated each other. The
actual meaning of this symbol is co-ordination of hand of different people by whom this
union is now at top.
FIRST HAND: Is for farmers (producers), without whom the organization would not be
existed. Farmers are the inspiration of the AMUL-taste of India.
SECOND HAND: Is for the representatives of processors by whom the raw milk processed in
to different finished products.
THIRD HAND: Is for marketers without whom the products would not been able to reach to
the customers.
FOURTH HAND: Is for customers without whom the organization could not carryon because
they are the people who consume the products.
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The brand name of the amul
The Kaira district co- operative milk producersunion ltd selected the brand
Name AMUL for its products range, in 1955.
AMUL word is derived from Sanskrit word AMULYA. And it means that
PRECIOU
PRICELESS
INVALUABLE
It means that one cannot measure the value.
One finds similar sounding word with the same meaning in several Indian
Languages also. The very concept of Kaira unions system of co-operative dairyingWas destined to become priceless for millions of farmers.
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PLANTS
Mogar Plant
It is situated on Anand -Vadodara Highway No. 8. Its Production is Chocolates,Nutramul, Amul Lite and Amul Ganthia. This Plant establish in 1973.
Anand Plant
The products are Milk, Buttermilk, Milk Powder, Butter, Ghee, Flavored Milk etc,. It
is establish in 1973.
Kaniari Plant
The product is cattle feed. Old plant establish in 1964 & new plant in 1980.
Khatraj Plant
It is situated between Nadiad-Mahemdabad. The product is Cheese.
Chilling Center
Kapadvanj, Undel and Balasinor
Satellite Dairy
Balasinor, Undel
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ORGANIZATION STRUCTURE
B.O.D
Chairman Managing Director
General1
Manager
Assistant General Manager
Manager
Deputy
Manager
Assistant Manager
Superintendent
Deputy Superintendent
Senior Officer Officers Assistants
Junior Assistant
Workers
(A to G Grade Workers)
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BOARD OF DIRECTORS
1. Shri Ramsingh P. Parmar Chairman
2. Shri Rajendrasinh D. Parmar Vice Chairman
3. Shri Shivabhai M. Parmar Director
4. Shri Maganbhai G. Zala Director
5. Shri Chandubhai M. Parmar Director
6. Shri Pravinbhai F. Solanki Director
7. Shri Dhirubhai A.Chavda Director
8. Shri Bhaijibhia A. Zala Director
9. Shri Mansinh K.Chauhan Director10. Shri Bipinbhai M.Joshi Director
11. Smt. Madhuben D. Parmar Director
12. Smt. Sarayuben B. Patel Director
13. Shri Ranjitbhai K. Patel Director
Shri B. M. Vyas
(M.D. of GCMMF, Anand)
Shri Rahulkumar Shrivastav
(M.D. of KDCMPUL, Anand)
Shri Deepak Dalai (District Registrar)
Kaira District Central Co-operative Bank
U.T.I. Bank
State Bank of India
Bank Of Baroda
Bank Of Maharastra
Corporation Bank
Auditor:- Special Auditor (Milk), Milk Audit Office, Anand.
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AMUL PRODUCTS
Products:-
Milk.
Butter.
Cheese.
Milk Powder.
Condensed Milk.
Baby Food.
Ghee.
Nutramul.
Chocolate.
AMUL Butter Milk.
AMUL icecream.
Dan (Cattle Food).
Peda
kajukatri
Industrial products:-
Coco Butter.
Coco Powder.
Coco Mass.
Cream.
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Amul Butterz
Amul Chocozoo
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Amul masti Dahi
Amul pure ghee
Amul Mithaee Gulab Jamuns
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MARKETING DEPARTMENT
INTRODUCTION
Every organization that produces one or more products requires marketing of the
products sell them in the market. It is only through marketing that people know about a
company's products. Hence marketing is considered as a key activity of organization. The
organization requires sound marketing structure to carry on its marketing activities.
However the concept of marketing is not confined only to selling of goods and
services to customers. Instead the company tries to create and maintain the customer base
through marketing. The marketing thus focus on the customer needs and wants in the market
and emphasis on producing and selling only those goods, which have higher demand in
market. The company mainly markets its products through advertising. Marketing uses
various sales promotional tools to boost the sales of the company. The marketing department
thus should have sound distribution channel and promotional system to make the marketing
activities sound.
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Organization Structure:
Managing Director
Deputy Manager
Product-dispatch Superintendent
Manager
Deputy Superintendent
Senior Officer
Assistant
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Marketing Mix:
The marketing mix is a set of four elements: Product, Price, Place and Promotion and
this is decided by GCMMF.
1. Product:
At AMUL, "GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION
LIMITED (GCMMF)" does the product planning at national level. It is the duty of GCMMF
to plan the new product by conducting the market survey at the state and national level.
However, issues of product lunch at the local level are taken care of by Amul itself. The Amul
has set up the commercial department, which conducts the survey in the local areas through
business. The new product decisions are also taken by the GCMMF.
2. Price:
The prices of products of Amul are also decided by the GCMMF. The GCMMF
conducts the market survey to check the validity and feasibility of prices in the market and
accordingly decides the prices of Amul products. However, the price is inclusive of several
elements like,
Cost of Milk
Labor Cost
Processing Cost
Packaging Cost
Advertising Cost
Transportation Cost
Sales Promotion Cost
Taxes etc.
The GCMMF considers all these cost aspects and set them up in pricing structure to
decide the jelling price of milk and milk products.
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3. Promotion:
AMUL, promotes its products through newspaper, Television, hoardings etc.
Television is the best media for advertising. The GCMMF however uses hoarding for
advertising in local areas. Hoarding designed on the creative basis attract the customer
more.
Advertising/Promotion
Amul uses the following advertising/promotion sources:
Television
Direct Mail
Personal contacts
Trade associations
Coordinators/ references
4. Place:
AMUL has developed federation and AMUL parlors located in several parts of
country. The GCMMF handles the works relating to managing of stocks and distributors in
country. Thus GCMMF looks after the disbursement of products to the various marketing
channel.
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Amul Dairys distribution channels
Amul Dairy
GCMMF
Area Depot
Distributors
Retailers
Consumers
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Market Segmentation:
At Amul, since the marketing activities are handled by the GCMMF, market
segmentation is also decided by GCMMF. The GCMMF determines the market size and
market its product accordingly in the market so that the product can be easily sold in the
market. Generally milk and milk products like butter and cheese arc popular in the all age
groups. Hence they arc segmented at the national level. Milk products like chocolate and
milk powder are segmented on the basis of age, that is for children but they arc also
marketed at national level. The GCMMF conduct the market survey to know the demand for
the products of Amul in the market and then accordingly determines the market segment,
defines the target market and emphasis on the demand of population in that particular
segment. The GCMMF has developed the marketing information system, which takes care of
such issues.
Amuls sales:
Sales Turnover Rs (million) US $ (in million)
1994-95 11140 355
1995-96 13790 400
1996-97 15540 450
1997-98 18840 455
1998-99 22192 493
1999-00 22185 493
2000-01 22588 500
2001-02 23365 500
2002-03 27457 575
2003-04 28941 616
2004-05 29225 672
2005-06 37736 850
2006-07 42778 1050
2007-08 52554 1325
2008-09 67113 1504
2009-10 80053 1700
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COMPETITROS:
Competitors are the person who produce and sales the same
product by the unit affect the business with several causes. The main rivals of AMUL are asfollowing.
Rich milkSardar milkNestleBritanniaCheese of Le-BoenGowardhan
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HUMAN RESOURCE DEPARTMENT
INTRODUCTION
"Management is getting things done by people."
There is one popular theme in the management "MAN IS MASTER" and AMUL
follows this theme. Generally organization is run with the help of five Ms viz. Man, Money,
Material, Machine and Market. However it is impossible to seem the organization without
human resource. Thus human resource comprises the value of the organization by effective
and efficient work.
HRM is concerned with integration - getting all the members of the organization in
loved and working together with a sense of common purpose. Human resource taker active n
le in the modern economic scenario of any company. The management of men is not only
fundamental but also dynamic and challenging Task.
The human resource management has thus become important to manage the human
resources properly in the organization. Therefore, the organizations involves human resource
department to take care of human aspect in the organization. The structure of the human
resources management department is as under:
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Selection:
Selection procedure is concerned with securing relevant information about the
applicant. The main objective of selection process is to determine whether an applicant meets
the qualification for a specific job and choose the application that is most likely to perform
well in the job.
The Selection process in AMUL is as under
Vacancy in any department
Approval from M.D.
Advertisement
Collection of Application
Securitize the application
Interview
Medical checkup
Selection
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Performance Appraisal System :
Performance appraisal is the process of evaluating the performance and qualification
of employees in terms of the requirement of the jobs for which they are employed. It is highlyuseful in making decision regarding the promotion, transfer, wage and salary administration
etc.
The Amul adopts the following appraisal system
Promotion Period Appraisal For
1 year Managers
3 year Officers
1 year Workers
1 .5 year Temporary Workers
Final confirmation with the recommendation by the divisional heads comes from the
MD on annual basis. His work is evaluated and if his work is not found satisfactory, he is
terminated from his job. At present Amul has adopted open system under which the employee
himself writes in which work he needs training and asks to the management to arrange for it.
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Wage And Salary Administration :
It is a universal fact that no one will work without any reward. Thus an employee has
to be properly rewarded for his services rendered to the organization. He should be paidreasonable wage or salary. The salary or wage is the remuneration for his service to the
organization.
At Amul, wages and salaries arc paid on monthly basis. A time rate wage system is
followed by the organization. The salary of an employee would include basic salary plus
allowances like house rent, medical allowance, clearness allowances, performance
allowances, festival allowances, travel allowances, education and development allowances,
leave allowances etc,. Besides provident fund is also paid out from the monthly salary.
A common method is followed for the wage and salary administration. The present
catalogue record received from the tine keeping officer is maintained of each employee in the
register, which is known as "Muster Roll".
Timekeeper sends that muster roll to the account department for attendance of each
and every employee. This will analyze and entered in the computer. The report is scrutinized
and statutory and non-statutory deductions are made. After this salary is calculated for each
employee through computer according to that they prepare salary sleep of employees.
The wages are paid in cash and also credited to their savings or current account. The
wages and salaries paid according to the grade wise. Amul delegates grades like A, L, C. D,
E, F, and G.
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Compensation :
In Amul, The workmen's Compensation Act. 1923 is very well executed. The
compensation is given lo employees as per the Act. In the case of major accident occur in
organization and if any worker get injure that lime organization take care of that employee. If
the employees under medical treatment and unable to came in organization for job, than half
salary will be given to that employee until he/she will again join organization. Employee also
gets all incentives during this period. Union provides complex expanse of medical treatment
to his/her employees. They have a provision for that amount in welfare fund. For that a
report from surgeon is considered.
In case of minor accident, if any employee get injure that time disability certificate
take as an evidence for the payment of compensation. According to disability certificate
union decide the compensation. Disability certificate must be issue by doctor from civil
hospital.
According the Act, if accident takes place because of worker mistake than he/she will
be unable 'o get compensation. But in AMUL even if accident occurs by workers mistake in
that case union paid compensation according to injury. For that employees must past through
medical report.
In case of accident, if worker get serious injury and he/she will be unable to do same
work after getting recovery than management give them relief by transferring them in
another section for suitable work. By this way they retain their employees.
Trade Union:
Trade unions as we know exist in inmost every organization. Trade unions are the
typical unions made up of employees of that particular organization. Generally the
employees in order to get better working conditions, better pay scales and to protect
themselves from exploitation form Trade Unions. Trade unions perform the basic activities of
discussions and negotiations with the management regarding the issues of conflict.
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At Amul there are tree trade unions in existence. One trade union is for workers the
other is for clerical staff and finally one is for officials. In the initial stage there were many
strikes had for 2 to 3 days of workers. Last strike was for 10 days in the year 1985. However
since then Amul has been faced harmonious relations with trade unions. Since Amul is a co-
operative organization each member of trade union works as a member of the Amul family.
Further more Amul holds the monthly discussions with all their employees to share with them
the problem" they night be facing. This awakens the mutual under standing between the
management and employees.
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FINANCE DEPARTMENT
INTRODUCTION
Financial Management is an activity, which is concerned with the acquisition and
conservation of capital funds in meeting financial needs and overall objectives of a business
enterprise.
In Financial Management process following points are considered:
Financial Analysis
Financial Decision-Making
Financial Planning
Financial Control
Finance department is that managerial activity concerned with the planning and
controlling of the firm's financial resources. Among all the 5 Ms, i.e. man, money, machine,
material and market. Money plays a vital role ion the organization. Finance is the lifeblood
for the success of an organization. For the organization to grow and develop an even basis,
availability or finance on adequate basis is the prime requirement.
The financial management involves critical decisions on which the very survival of the
organization depends. The main financial decisions are as follows:
Investment Decision.
Financing Decision.
Dividend Decision.
Financial decisions are thus very crucial and important, decisions for the firm. The
main function of finance department is to tackle The day to day financial requirement and
other short term and long term expenses, which an organization incur quite often.
All the other department of the organization strongly depends upon the financedepartment to carry on their departmental activity efficiently. Hence it is the responsibility of
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the finance manager to manage the finance function with proper care. Adequate financial
availability in time in the organization would lead to organizational success and the failure
to manage finance will thus lead to inefficiency.
IMPORTANCE OF FINANCIAL MANAGEMENT
Proper finance is the real key to the success of any business enterprise. Without
proper finance a business neither survives nor expands and modernizes. It is the finance,
which works like a lubricant, which keeps the organization dynamic. Keeps men and machine
at work. The following are the points highlight the importance of finance.
Finance for business promotion. .
Finance management for optimum use of firm.
Use for co-operation in business activities.
Useful in decision-making.
Determinant of business success.
Measurement of performance.
Basis of planning, co-operation and control.
Useful to shareholders and investors.
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ORGANIZATION STRUCTURE
Finance management is vital as well as crucial part of management as whole and
involves planning, allocation of resources and their control. The ultimate responsibility offinance decisions lies with the top management. The nature of finance organization differs
however from firm to firm.
Top management takes the complex and important financial decisions and middle
level personnel take other decisions. The account department is divided in to various other
sections like.
1. Account Division
The Function Of this Division is prepare voucher, bills. It also issue Check for the
payment.
2. ESTA Division
The Function of this Division is to prepare payroll of employee.
3. Purchase Bill Division
The Function of this division is issue Check or Draft to party from whom they
purchase raw material.
4. MIS Division
The Function of this division is handle Data related Account. They have a data base
system for that. They have Accounting software system Tally 6.3. In which they input all
information related Accounting.
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FINANCE STRUCTURE
MD
General Manager
Asst. General Manager
A/C Manager Comm. Manager Pur. Superintendent
Dpyt. Sup. Dpyt. Sup. Dpyt. Sup.
Officers Officers officers
Sr. Asst. Sr. Asst. Sr.Asst.
Jr. Asst. jr.Asst. jr.Asst.
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ADVERTISING
DEFINITION:
Advertising is a paid form of non personal communication about products or
services marketed by an organization or market or company.
Elements of promotion mix:
1) advertising
2) sales promotion
3) personal selling
4) publicity
Role of advertising:
1) to inform
2) to retain
3) to remind
4) to influence
5) to entertain
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STAGES OF ADVERTISING
1) PIONEERING STAGE:
Pioneering stage is related with introductory stage of product life cycle and
in this stage of advertising concentration is on what I am and what can I do for u .
When product is new or when existing product is introduced with new
features you have to tell something through advertisement to the customers or to the target
audience.
2) COMPETITIVE STAGE:
This stage is related with growth stage of maturity. When the product has
capture the attention of the target audience you have to tell about the products through
advertisements.
3) RETENTIVE STAGE:
This stage is related with maturity stage of product life cycle and you have to
remind the customers that I am around for you. Example: vip bags , bajaj ,etc.
4) NO ADVERTISING STAGE:
This stage is related with the decline stage of product life cycle in whichsales declines and expenses increase so you have to stop advertising the product.
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FORMS OF ADVERTISING
1) PRODUCT ADVERTISING:
In this type of advertising concentration is on the following aspects:
1) Brand building
2) generic campaign
2) CORPORATE ADVERTISING:
In this type of advertising concentration is on the following aspects:
1) Corporate image building
2) Public relation
3) SOCIAL ADVERTISING:
In this type of advertising concentration is on following aspects:
1) Awareness campaign
2) product promotion
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PRODUCT CATEGORY AND ADVERTISING ROUTE
1) CONSUMER DURABLE PRODUCTS:
1) The advertisement of consumer durable products should be informative and pront
media is more preferable even though audio, video and print media are there for sending
message to the target audience.
2) The advertisement should be such that it creates preference for the particular brand
in the mind of the customers.
3) Initial products need high level of customer involvement in high process so this
advertisement hope or expect initial response generator.
2) CONSUMER NON DURABLE PRODUTS:
1) The advertisement of consumer non durable product should be emotional or
interactive.
2) The advertisement expect more selling of the product.
3) Use of electronic media .
3) INDUSTRIAL PRODUCT:
1) The advertisement should be educational and awareness generator.
2) Focus on corporate image.
3) Print media is preferred.
3) SEVICES:
1) The advertisement of services should be informative and descriptive.
2) It should be influencer or awareness generator.
3) Print or electronic media can be used even though outdoor media is also playing an
important role.
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SIX MS OF ADVERTISING
1) MISSION:
Mission includes business objectives, marketing objectives and advertising objectives
such as to inform, to remain, to remind, to influence and to entertain.
2) MARKET:
Market addresses questions like who are we communicating with, what does the target
audience respond to and how can these people be reached.
STEPS IN ADVERTISING CAMPAIGN PLANNING:
1) Define the advertising objective and target market.
2) Check the awareness level of target audience.
3) Identify the motivators and demotivators.
4) Establish link between unit selling price(usp) and need.
5) Check media habits of audience.
6) Differntiate the advertising.
7) Position the advertising.
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3) MONEY:
The third M of advertising explains about the money factor that is what amount to be
spent and under what different heads will be spent.
METHODS BY SETTING ADVERTISING BUDGET:
The following are the methods of setting advertising budget:
1) Percentage of sales method.
2) Affordable method.
3) Competitive clarity method.
4) Objective and task method.
MAJOR ADVERTISING BUDGET HEADS:
1) Media expenses:
This include the cost of releasing the advertisement in the selected medias.
2) Agency charges:
This include the expense of hiring the agency to do the job.
3) Production charges:
This include the cost of preparing advertisement.
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4) MESSAGE:
APPROACHES TO MESSAGE DESIGN:
1) Interactional approach:
Under this approach the concentration is there on interaction with actual users who
talk about the benefits of the products.
2) Transformational approach:
Advertisements which attach the experiences with the use of products are called
transformation advertising. The following appeals are used:
1) Humour:
Laughter is the best medicine and the fact that humour is universal bonding factor.
2) Fear:
In some advertisement we see the fear directly or indirectly.
3) Emotional:
Love , responsibility , loneliness and hate are the aspects which are highlighted in the
advertisements.
3) Comparative approach:
Two type of comparison is shown in the advertisement that is direct and indirect
comparison.
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DESIGNING OF PRINT ADVERTISING:
1) Logo:
It is a symbol or trademark of the company.
2) Head line or sub head line:
Head line carry promise made by the product and sub head line carry on with the head
line while spelling out the benefits in the clear term.
3) Body copy:
Body copy is the amplification the claims made through the head line and sub head
line.
FACTORS AFFECTING CREATIVE CONTENT:
1) Market:
The profile of target market decide the language to be used, ideas to be forwarded and
models to be used.
2) Mission:
The mission of advertising may be to remind, to inform, to retain or to entertain.
3) Product profile:
You have to think about what is your product and to whom you have to targeted a
product.
4) Product life cycle stage of the product:
If the product is in introductory stage the content shoule be informative and educative,
If it is in growth than message should highlight advantages over competitive products, if it is
in maturity you have to remind customers and if it is in decline stage than you have not toadvertise the product.
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GUIDELINES TO CREATE A GOOD MESSAGE:
The following are the guidelines to create good message:
1) Be specific.
2) Keep it short and simple.
3) Sell the benefit.
4) Make copy or visual excting.
5) Use of celebrities and opinion leaders.
6) Use of contrasting especially of colours.
7) Exploit the potential of colour.
8) Use of kids.
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5) MEDIA:
The following are the different categories of media available for the advertising
products.
1) Print and non print media
2) Audio, video and audio-video media.
3) Print, electronic and outdoor medias.
Media planning:
Media planning is a process that involves selecting the right media vehicles to carry
the advertising to target audience.
Factors affecting media choice:
1) Product and media match.
2) Reach of media.
3) Cost of media.
4) Competitors presence.
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6) MEASUREMENT:
Measurement is the important aspect or element of advertising. For measurementaspect of advertising we have to consider or think about designing advertising goal for
measuring advertising result approach.
The market has to concentrate on the following approach:
1) Change in sales before and after advertising.
2) Meeting of advertising objectives.
3) Reaction of target audience to the advertising campaign.
Whatever measurement activities are there of advertisement it is related with the
following:
1) Communication effect research.
2) Sales effect research.
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CONCLUSION
Amul is a highly successful co-operative sector in world. Which truly work for
farmers who are the members of union. All departments are working well and help the union
to reach towards top position. I have list out some recommendations. They are as follows.
Special Seminar should be arranged in village for guiding the village people in
proper take care of Animal. Amul should do research actively in village for guiding the
village people in proper take care of Animal. Amul should do research activity in animal
husbandry practice to increase the milk production.
Amul has competitive established system. The four hands of Amul are working
successfully with corporation. The people of Amul are very co-operative and enthusiastic.
Amul is famous as Anand pattern for its co-operative organization in world. So its a
matter of proud for the people of Anand as well as India. Amul is really The Taste of
India.
According to my point, success factors of Amul are hard work, discipline, co-operativestructure, production technology development.
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SWOT ANALYSIS
Strengths:
Demand profile
Margins
Flexibility ofproduct mix
Availability of raw material
Technical manpower
Weaknesses:
Perishability
Lack of control over yield
Logistics of procurement
Problematic distributionCompetition
Opportunities:
Value addition
Export potential
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Threats:
Milk vendors, the un-organized sector
Strong marketing strategy by competitors by offering the discount
coupons to consumers and providing healthy commissions to the
retailers.
Strong supply chain management by the competitors.
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FINDINGS AND SUGGESTIONS
There is a scope of business as there is a demand for dairy products.
AMUL Dairy should open more outlets to get the maximum advantage of the demand.
Need to put more stress in the face-to-face direct marketing to reach to the customers.
The increasing demand for these products presents a great opportunity for
theProduction.
The major problem faced by Retailers and AMUL Retailers is the SUPPLY problem i.e.
problem with the distribution. The company should aim at improving its SUPPY CHAIN
MANAGEMENT.
The company should increase incentives that can increase Retailers Nominal Income.
This can be done through certain Schemes that increase the overall sales.
The company should lay emphasis on proper PROMOTION of the brand at the Retail
Outlet.
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BIBLIOGRAPHY
BOOKS: The Amul India Story: Ruth Heredia
.
: Marketing Management By Philip Kotler (11th
Edition)
: Human resource management by tanuja agrawala
WEBSITE:
www.amul.com
www.google.com
www.managementpredise.com
http://www.amul.com/http://www.amul.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.amul.com/ -
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